PROFESSIONAL ETHICS

Introduction
Ethics, sometimes known as moral philosophy, is not easily defined and philosophers provide different
explanations of it.

The word 'ethics' is derived from the Greek word ethikos (root form ethos) which means "character" or
"custom." For the Greeks, it referred to the appropriate or customary way to behave in society.

The word morality, has its root in the Latin word moralis and is concerned with which actions are right and
which are wrong, rather than the character of the person. Today, the two terms are often used
interchangeably.
 Approaches to Ethics
Normative Ethics Descriptive Ethics Metaethics

Normative ethics was the Descriptive ethics is the study Metaethics is, sometimes
prevalent form of ethics in of ways in which different called moral philosophy or
philosophy till the end of the 19th people and societies have philosophical ethics. This
century. It includes a answered moral questions. group attracts considerable
consideration of the importance Can it be described as moral interest today. It seeks to
of human freedom, & a sociology or moral understand the meaning and
discussion of the limits of a anthropology, a description function of moral language,
human's responsibility for moral of the moral code prevailing and of ethical terms such as
decisions and for the in different societies? It good and bad. It looks at the
consequences of his actions. The involves different approaches logic used in arriving at the
role of conscience in moral inside one society for the conclusion of an argument
decision making is also a part of resolution of ethical that justifies a moral choice.
normative ethics. This is the problems.
traditional way of viewing ethics.
Meaning of Ethics
Ethics involves moral principles which, in turn, involve the way individuals, groups or organisations
conduct themselves which of the time as good or bad conduct. It has to do with fulfilling the relationship
between people and society at large. When applied in a business context, it becomes business ethics.
Ethics in business has become one of the most challenging issues confronting the whole business
community. Establishing ethical climate is like starting an endless marathon. It is an "on-going process"
and never stops. The stakeholder, the management, the staff and everyone associated should ensure
commitment towards ethical behaviour at all levels.

Major Attributes of Ethics

 Concept: The field of ethics may be conceived as a discipline, science, study or evaluation.

 Content: The subject matter of ethics is concerned with what is good or bad, and right or wrong.

 Judgment: It is concerned with the overt act. Behaviour and its causes are judged.

 Standards: Judgment is based on standards which are, in turn, based on values.

 Values: The set of values and criteria used as standards for judging human conduct.
Business Ethics
Business ethics refers to implementing appropriate business policies and practices with regard to
arguably controversial subjects. Business ethics is very much influenced by social movements, social
system and social preferences. No business can survive or grow without social harmony. Individual's
values, however best they may be, are not sufficient to attain the maximum level of ethical performance.
It guides executives, managers, and employees in their daily actions and decision-making. Some facets
of business ethics are:

 Stakeholders/ shareholders or other providers of money.

 Employees.
 Customer Relations.
 Community/ Society.
 Government.
Approaches to Business Ethics:
1. Profit motive approach:
2. Legal approach:
3. Moral obligations approach
 Importance of Ethics
WHY ETHICS?

 Basic human needs: Being fair, honest and ethical is one the basic human needs. Most people want
to be ethical in both- private as well as professional lives.

 Credibility among the public: An organization that is believed to be driven by moral values is
respected in the society even by those who may have no information about the working and the
businesses or an organization. A company perceived by the public to be ethically and socially
concerned will be honoured and respected more as compared to others. For example: Infosys.

 Credibility with the employees: Ethics provide a basis for aligning a company’s leader and its
sub-ordinates behaviour to accomplish one common goal/ objective. It creates harmony among
employees.

 Better decision making: Decisions are driven by values. Ethical decisions made by the company
will always be in the interest of the shareholders, other stakeholders and its employees.
Ethics in management refers to a company’s social responsiveness.
 Ethical decisions have a significant implication on the
organization’s stakeholders, its employees & the shareholders.
 The ethical approach includes concerns like justice, individual
rights, & utilitarianism.
 Managerial ethics improves society at large with:
-Organisational revolution, corporate revolution, managerial
revolution, property revolution.
 Business ethics is more concerned with its social responsibilities.

Ethics in Management
Organizational Ethics
Change is a necessary way of life for all

Organizational organizations. The way an organization should

Ethics respond to external environment refers to
organization ethics. No organization should
depend on unfair means to earn money.
Employees should not indulge in destruction
or manipulation of information to get results.

Common unethical practices prevailing in an organization:

1) The consumers
Adulteration, spurious products, duplicates, injurious products, deceptive advertisements.
2) The Employees
Low salaries, working conditions, exploitation, Unreal acceptance of remuneration.
3) The Government
Tax evasion, pollution, bribes for political support.
Mass Communication & Ethics
Television networks usually try to exercise professional judgment and to avoid offending viewers. Some

television networks have published codes of conduct to guide their efforts. In cases where a television

station does offend a viewer or group of viewers, laws are in place to guide both the offended party and the

television industry. Laws take over when ethics questions are not resolved between people representing

two sides of an issue. When a program or an advertisement offends a television viewer, several outcomes

might occur. The following is a list of some of the ways in which viewers have, in the past, used their right

to object to television programming or advertising, and registered their concerns about the ethics of

television.
 A viewer might write a letter of complaint.
 A viewer might bring a legal suit against the television network, OR
 A specific department or individual employed by the network.
 A viewer contacts a consumer group and registers a concern.
 Ethical aspects in marketing
Marketing ethics involve moral principles and values that should be followed during marketing
communication. They are the guidelines that let companies decide about their new marketing strategies.
But also keep in mind that it depends on one’s judgment of ‘right’ and ‘wrong.’ In other words, if a
company makes any claims about its products and cannot live up to those claims, it may be called
unethical behavior. The American Marketing Association’s code has outlined the responsibilities as:
 Responsibility of the marketer.
 Honesty & fairness.
 Rights & duties in marketing exchange process.
 Organizational relationships.

Standards For Ethical Marketing Code

1. To help identify acceptable practices.
2. Foster internal control.
3. Avoid confusion.
4. Facilitate a basis for discussion.
Whistle blowing
'Whistleblowing' is the term used to define an individual's
decision to disclose the information regarding unethical,
immoral or illegal actions to an authority. Example: Padding
an expense report, violating laws on hiring and firing, etc.

Merits (advantages):
1. Combat fraud
2. Avoid reputational damage
3. Prevent issues escalating
4. Minimise losses
5. Raise awareness
6. Create an open culture Demerits (disadvantages):
7. Whistle blowing is an anti-corruption tool 1. Stress, termination and mistrust

8. It ensures effective system of internal 2. Disrupt the team spirit

control 3. Mobbing

9. It is a good corporate governance practice

Education- Ethics & New Professional
 On-the job training
 Training programmes on the ethical use of the
World Wide Web
 Employee discussion groups on ethical Issues
 Personnel services

Ethical Investing
Ethical investing means allocating financial resources taking into consideration both economic and social
criteria, with the goals of maximising the potential financial and social returns to both investor and the
investee.
 Professional
Ethics
Professional ethics encompass the

personal and corporate standards

of behaviour expected of

professionals.

Professional ethics are principles

that govern the behaviour of a

person or group in a business

environment. Like values,

professional ethics provide rules

on how a person should act

towards other people and

institutions in such an

environment.
 Intellectual Properties & Ethics

World Intellectual Property Organization (WIPO) was created to promote and protect intellectual property
(IP) across the world by cooperating with countries as well as international organizations.

WIPO's activities include hosting forums to discuss and shape international IP rules and policies, providing
global services that register and protect IP in different countries, resolving transboundary IP disputes,
helping connect IP systems through uniform standards and infrastructure, and serving as a general
reference database on all IP matters; this includes providing reports and statistics on the state of IP
protection or innovation both globally and in specific countries.
Fundamental Principles

-Hold paramount the safety,

health, & welfare of the
publicly;
-Perform services only in areas
of their competence;
-Issue public statements only in
an objective and truthful
manner;
-Act for each employer or client
as faithful agents or trustees· '
-Avoid deceptive acts and
-Conduct themselves
honourably, responsibly,
ethically, and lawfully so as to
enhance the honour,
reputation, and usefulness of
the profession.
Thank you